XRP Bulls to Target $0.38 on Sentiment Toward the SEC v Ripple Case

Key Insights:

• On Monday, XRP rallied by 5.69% to end the day at $0.36587.
• It was another quiet session, with no updates from the SEC v Ripple case to influence, leaving investor optimism to support a return to $0.36.
• The technical indicators have turned bullish, with XRP sitting above the 100-day EMA, supporting a near-term rise to $0.38.

On Monday, XRP rallied by 5.69%. Reversing a 1.69% loss from Sunday, XRP ended the day at $0.36587. XRP ended the day at the highest level since December 15.

Bullish throughout the Monday session, XRP rallied from an early low of $0.34565 to a late high of $0.36968. XRP broke through the day’s Major Resistance Levels to end the session at $0.36587.

There were no updates from the ongoing SEC v Ripple case to provide direction. However, the trend has become more bullish, with newfound optimism delivering much-needed support.

Court Filings Fuel Investor Optimism and an XRP Rally

While there were no updates, the Court filings on December 22 reflected the SEC’s fears vis-à-vis the William Hinman speech-related documents. The SEC sought to shield the Hinman speech-related documents in the filing of Omnibus Motions to Seal all materials relating to the Summary Judgment motions.

The Court ordered the SEC to hand the speech-related documents over to the defendants in September. Before the ruling, the SEC had failed to turn the speech-related documents over despite more than six attempts to protect the William Hinman speech-related documents under the attorney-client privilege.

Another Court ruling against the SEC could force Gary Gensler to move toward a settlement. The latest news of FTX’s relations with members of the SEC could give the SEC more reason to agree to a settlement. With the SEC looking to win the right to regulate the digital asset space, another crypto-related embarrassment could hand the reins to the CFTC.

While investor hope for a favorable outcome delivered a bullish Monday session, investors are also waiting for a ruling on the Summary Judgment Reply briefs, which will continue to test buyer appetite.

As background, former SEC Director of the Division of Corporation Finance William Hinman said that Bitcoin (BTC) and Ethereum (ETH) are not securities. The contentious issue with the speech related to Hinman’s connection with Simpson Thacher, which is part of a group that promotes Enterprise Ethereum. After leaving the SEC, Hinman returned to Simpson Thacher.

XRP Price Action

At the time of writing, XRP was down 0.98% to $0.36228. A mixed start to the day saw XRP rise to an early high of $0.36743 before falling to a low of $0.36150.

Technical Indicators

XRP needs to avoid the $0.3604 pivot to target the First Major Resistance Level (R1) at $0.3752. A move through the Monday high of $0.36968 would signal another bullish session.

In the case of an extended rally, the Second Major Resistance Level (R2) at $0.3844 would likely come into play. The Third Major Resistance Level (R3) sits at $0.4085.

A fall through the pivot would bring the First Major Support Level (S1) at $0.3511 into play. However, barring an extended sell-off, XRP should avoid sub-$0.35 and the Second Major Support Level (S2) at $0.3364. The Third Major Support Level (S3) sits at $0.3123.

The EMAs and the 4-hourly candlestick chart (below) sent a more bullish signal.

At the time of writing, XRP sat above the 100-day EMA, currently at $0.35995. The 50-day EMA closed in on the 100-day EMA, with the 100-day EMA narrowing to the 200-day EMA. The signals were bullish.

A breakout from the 200-day EMA ($0.37259) and R1 ($0.3752) would give the bulls a run at R2 ($0.3844). However, a fall through the 100-day EMA ($0.35995) would bring the 50-day EMA ($0.35326) and S1 ($0.3511) into play.